Correlation Between Supernus Pharmaceuticals and Medicure
Can any of the company-specific risk be diversified away by investing in both Supernus Pharmaceuticals and Medicure at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Supernus Pharmaceuticals and Medicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supernus Pharmaceuticals and Medicure, you can compare the effects of market volatilities on Supernus Pharmaceuticals and Medicure and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Supernus Pharmaceuticals with a short position of Medicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supernus Pharmaceuticals and Medicure.
Diversification Opportunities for Supernus Pharmaceuticals and Medicure
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Supernus and Medicure is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Supernus Pharmaceuticals and Medicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicure and Supernus Pharmaceuticals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Supernus Pharmaceuticals are associated (or correlated) with Medicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicure has no effect on the direction of Supernus Pharmaceuticals i.e., Supernus Pharmaceuticals and Medicure go up and down completely randomly.
Pair Corralation between Supernus Pharmaceuticals and Medicure
Given the investment horizon of 90 days Supernus Pharmaceuticals is expected to generate 1.12 times less return on investment than Medicure. But when comparing it to its historical volatility, Supernus Pharmaceuticals is 1.86 times less risky than Medicure. It trades about 0.02 of its potential returns per unit of risk. Medicure is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 85.00 in Medicure on August 30, 2024 and sell it today you would lose (17.00) from holding Medicure or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supernus Pharmaceuticals vs. Medicure
Performance |
| Timeline |
| Supernus Pharmaceuticals |
| Medicure |
Supernus Pharmaceuticals and Medicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supernus Pharmaceuticals and Medicure
The main advantage of trading using opposite Supernus Pharmaceuticals and Medicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supernus Pharmaceuticals position performs unexpectedly, Medicure can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Medicure will offset losses from the drop in Medicure's long position.| Supernus Pharmaceuticals vs. Prestige Brand Holdings | Supernus Pharmaceuticals vs. Evotec SE ADR | Supernus Pharmaceuticals vs. Collegium Pharmaceutical | Supernus Pharmaceuticals vs. ANI Pharmaceuticals |
| Medicure vs. PayPal Holdings | Medicure vs. Nasdaq Inc | Medicure vs. Choice Hotels International | Medicure vs. Microsoft |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |